Finance: Banking, Investments, Stock Exchanges

Bohai Industry Investment Fund

Sir Edward George, former governor of the Bank of England; Gerry Corrigan, former president of the New York Federal Reserve; Andrew Crockett, former general manager of the Bank of International Settlements; David Carse, former deputy chief executive of the Hong Kong Monetary Authority; and Sir Howard Davies former head of the UK’s Financial Services Authority. Focusing on China’s biggest state banks the intent is to clean up bad debt, overhaul management systems, impose strict corporate governance standards and then sell stakes to strategic investors including some listing on stock exchanges. The four biggest banks hold 70% of China’s banking assets. Morgan Stanley is expected to do the initial public offering for China Construction Bank, Goldman Sachs and UBS will do the IPO for Bank of China and Credit Suisse First Boston is expected to list the Industrial and Commercial Bank of China. Among the major cross border investors in the Chinese banking sector are HSBC, Citigroup, BNP Paribas, Credit Lyonnais and International Finance Corporation the private sector arm of the World Bank.